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Automattic , the ship’s company behind WordPress.com , Tumblr , WooCommerce , and a range of other online services , is reducing its hands . The layoff will impact 16 % of staff across divisions , anAutomattic blog office issue Wednesday reveals .

Ahead of the layoffs , Automattic ’s internet site listed 1,744 employees , which means north of 270 the great unwashed may have lost their jobs . ( Automattic worsen to reassert this number but we ’re hear the exact issue was 281 . )

The C. W. Post , which was also portion out with ship’s company employee via Slack earlier on Wednesday , explains that this “ restructuring ” was necessary due to the competitive nature of the market and the f number with which technology is evolving .

However , the move also comes after a tumultuous yr for Automattic , which has engaged in acontroversial legal battlewith hosting company WP Engine . The ongoing dramaalready led to the departure of some Automattic employees last crepuscle . In Automattic CEO Matt Mullenweg ’s sentiment , hosting provider WP Engine did not sufficiently contribute to the open source undertaking WordPress.org , and its habit of the “ WP ” stain was confusing consumer about its affiliation with WordPress itself .

In Wednesday ’s declaration , Mullenweg explained that the newly announced layoffs will allow Automattic to become “ more agile and responsive , ” “ erupt down silo that have created inefficiencies , ” “ focus on Cartesian product quality , ” and “ ensure a workable financial role model for recollective - term success . ”

“ To support our customers and products , we must meliorate our productivity , profitableness , and capacity to commit , ” reads the office , author by Mullenweg .

The layoff will impact employees across 90 countries , who will get a severance package and occupation location help , among other things .

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“ Automattic has multiple Cartesian product with public - touching potency in WordPress and beyond . I ’m confident we will come out of this spot in a good situation , poise to create a vibrant , profitable , well - designed caller that will continue our mission to democratise the internet , ” Mullenweg write .

TechCrunch sources told us that the layoffs were efficacious immediately , meaning people receive an email and then immediately lost accession to Slack . The layoff let in some longtime employees who have been with the company for north of a decade , we understand .

The intelligence follows Automattic ’s cancellation of its yearly “ Grand Meetup ” company hideaway for 2025 , a source also told us .

Automattic later enjoin TechCrunch the 9 - hebdomad shape was incorrect , however .

“ The public statement regarding the size of it of the breach packages are not   unfeigned , ” reads a company statement on the topic . “ We ’re committed to treat all employment count with integrity and paleness , aligning with our pith operating values . Those impacted have our enduring gratitude for their clip with the ship’s company   and   we wish them well . ”

Sarah Perez can be get hold of at @sarahperez.01 on Signal and sarahp@techcrunch.com . This tale was update after publication with more details , admit a new scuttlebutt from Automattic regarding breach .